FRANKFORT, Ky. - A bill capping interest rates on payday loans is awaiting a hearing in a state House committee when lawmakers reconvene in a couple of weeks.

House Bill 182, sponsored by Rep. Darryl Owens, D-Louisville, caps interest at 36 percent on those short-term loans that can now rack up to 400 percent annual interest.

Kent Ostrander, executive director of The Family Foundation of Kentucky, a conservative public-policy group, says he believes in the free-market system but adds that a 36-percent interest rate cap could spring families from a debt trap they currently can't escape.

"We should never have predatory policies that prey on a particular element of our society. Clearly, it's most likely the poor that are targeted with payday lending."

Recent data suggests that an average $350 payday loan ends up costing more than $800 once fees and interest are added, proponents of the cap say, because the loan is typically rolled over eight times. Industry representatives argue that cost is distorted and say higher rates and fees are justified given the high-risk nature of clients with bad credit.

In some states where caps have been placed on loans, payday lenders say they've had to close up shop. Industry spokesmen also warn that the measure would deprive thousands of families access to short-term credit and put more than 2,000 Kentuckians out of work.

Anne Marie Regan, co-chair of the Kentucky Coalition for Responsible Lending, says the goal is not to put quick-cash operations out of business.

"What we're suggesting is that they only be allowed to charge a reasonable rate of interest that all other lenders are permitted to charge. And we feel that 36-percent interest rate would create a level playing field for lenders."

Ostrander agrees, and offers a recommendation.

"The market should also be broadened, in our opinion, so that even some of the more established lending institutions - banks - should perhaps get involved and not only make money through established credit but also through those that don't have established credit."

Seventeen states have either never allowed payday loans or have capped interest rates at 36 percent. The bill is waiting for consideration by the House Banking and Insurance Committee.


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Air travelers could face fewer obstacles in securing a refund if their flight is canceled or changed under new federal rules announced Wednesday.

The moves are being praised by watchdog groups. The Department of Transportation said airlines are now required to promptly provide passengers with automatic cash refunds when they are owed one.

Teresa Murray, consumer watchdog director for the U.S. Public Interest Research Group, said some carriers have not adhered to standards, leaving passengers in a bind.

"They would drag their feet, and they would say, 'Well, you bought your ticket from a ticket agent, so we don't know where your money is. Or, here, have a voucher,'" Murray explained.

Amid higher complaint volumes, companies will be forced to act quickly. The new rules, which are being phased in, provide clearer definitions for travel disruptions, including delays of at least three hours on a domestic flight and six hours on international flights. A key industry group responded to the announcement by touting transparency efforts among carriers.

Murray acknowledged most people are not frequent flyers, and it is hard for them to keep up on all the least practices and policies among airlines.

"The average person only flies once every 18 months," Murray pointed out. "This will just bring transparency to that process and it kind of evens the playing field."

Murray added it could come in handy for Midwestern customers when a winter storm wreaks havoc on air travel. The new rules also require refunds for baggage fees when a piece of luggage is delayed by 12 hours or more for domestic flights. And there must be upfront disclosure on fees for first and second checked bags and carry-on bags.


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Wisconsin lawmakers recently debated reforms for payday loans. Efforts to protect consumers come amid new research about financial pain associated with cash advances offered through smartphone apps. The Center for Responsible Lending is out with findings that detail how "earned wage advances" from digital platforms come with extra costs disguised as things like tips. Traditional payday lenders are often criticized for charging excessive interest rates on loans that are usually around $500.

Lucia Constantine, a researcher with the Center for Responsible Lending, said customers are usually seeking smaller amounts from the apps, but she warns they can be just as costly.

"They are trapping consumers in a cycle of borrowing that is similar to that of a payday loan, " she said.

The report said after using these financial products, customers are seeing overdrafts on their checking accounts increase by 56% on average. Industry leaders deny they're barraging consumers with hidden fees, stressing that features such as suggested tips are optional. More broadly, a bipartisan payday loan reform bill in the Wisconsin Legislature failed to advance this month.

Constantine said like longstanding payday lenders, these cash advance apps can be hard to regulate. Meanwhile, she urged those in a bind to explore other options.

"[They should] try talking to their friends and family as a first source. The other option which I would recommend is reaching out to their credit union or banking institution to see if they can get some sort of small-dollar loan," she said.

She noted places such as credit unions typically provide more transparency on loan costs. According to the report, three-quarters of consumers took out at least one advance on the same day or day after a re-payment was posted.


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Food prices remain high, in Montana and across the country.

A new report by the Federal Trade Commission says the country's largest grocery companies are gouging consumers, by keeping prices artificially high.

Many grocers, retailers and wholesalers have consolidated to cut costs. Grocers continue to blame supply chain problems, even though regulators have said most of those issues have been resolved.

President of the advocacy group Farm Action, Angela Huffman, said retailers were doing more than making up for lost revenue during the pandemic-era supply chain disruptions - and the FTC report says they continue to do so.

"In 2021, the retailer revenues, they rose to more than 6% higher than their total costs, and that those profits are still going up," said Huffman. "So, in the first nine months of 2023, the profits increased to 7%."

At nearly 6.5%, Montana had the nation's ninth-highest grocery price increase in 2023.

The FTC data show Amazon, Kroger and WalMart each gained market share during and after the pandemic - while profits continued to rise.

Other large retailers and wholesalers have consolidated, which they say gives them more buying power and the ability to pass those savings on to customers.

Huffman said that isn't what's happening, and calls on regulators to fine the grocers, or more.

"This would be kind of the farthest extent of what they could do, but go so far as breaking them up," said Huffman. "In years past, they broke up the telephone companies and the railroads and, you know, that would be the ideal outcome for us, is to take away their excessive power."

Huffman also points to a 150% increase in egg prices in 2023, which producers blamed on the avian flu. The FTC says the disease did not justify the drastic price hike.